3PLs (third-party-logistics providers), 193-196
advantages, 194
4PLs (fourth-party-logistics providers), 196-198
components for success, 197
Menlo Worldwide Logistics case study, 197-198
players, 197
80/20 rule, 61
ABC method, 267
accumulation warehouses, 133-134
accuracy (order-filling), 149
acquisition, 189
Act to Regulate Interstate Commerce, 104
activity, 6
activity-based costing. See ABC method
aggregate planning and scheduling, 55, 295
collaboration, 206
integrated business planning, 76
MPS (master production schedule), 78-80
MRP (Material Requirements Planning), 80-83
BOM (bill of materials), 80-81
overview, 69
production strategies, 79
FCS (finite capacity scheduling), 85
types of scheduling, 84
typical planning and scheduling process, 83
strategies, 78
supply capacity options, 77
technology, 86
agility, 6
air carriers
domestic transportation, 108
international transportation, 177
Air Deregulation Act of 1978, 104
air waybill, 122
allocation, warehouses and, 134
American Production and Inventory Control Society (APICS), 29, 67
American Society for Transportation & Logistics (AST&L), 103
analytics, 298
APICS (American Production and Inventory Control Society), 29, 67
approving invoices, 100
Apria, 195
Ariba, 101
arm’s-length transactions, 189
assemble-to-order (ATO), 79
assembly line design and balancing, 256-258
asset recovery, 170
assets, 6
associative forecasting models
correlation, 45
least squares method, 44
multiple regression, 46
overview, 40
assortment warehouses, 133-134
AST&L (American Society for Transportation & Logistics), 103
ATO (assemble-to-order), 79
automated warehouses, 130
automotive industry, return rates in, 160-161
averages
moving averages, 43
weighted moving average, 43
backorders, 76
backward scheduling, 84
balanced scorecard approach, 267-270
customer service metrics, 269
financial metrics, 270
operational metrics, 269
batch orders, 149
batch size reduction and quick changeover, 289-290
best of breed solutions, 213
best-in-class software, 217
BI (business intelligence), 216
bid and auction, 99
bidding, 97
bill of lading (B/L)
bill of materials (BOM), 73, 80-81
billing, 114
bills. See documents
B/L (bill of lading)
BOM (bill of materials), 73, 80-81
bonded warehouses, 129-130, 178
break-bulk warehouses, 128, 132-133
business intelligence (BI), 216
capacity, FCS (finite capacity scheduling), 85
career outlook
facility layout, 262
inventory planning, 67
supply chain and logistics management, 26-29, 293-294
supply chain network analysis, 247
carnet, 120
Carrier Corporation (Mexico), 195-196
carrying or holding costs, 54
catalog retailer warehouses, 128
categories (measurement), 267-268
causal forecasting models. See associative forecasting models
center of gravity analysis, 243-245
centralized return centers (CRCs), 168-169
certificates
certificate of free sale, 120
certificate of inspection, 120
certificate of insurance, 120
certificate of manufacture, 120
certificate of origin, 119
certification programs, 24-29, 89
Certified Production and Inventory Management (CPIM), 29
Certified Professional in Supply Management (CPSM), 29, 89
Certified Supply Chain Professional (CSCP), 29
challenges
GSCM (global supply chain management), 178-180
SCM (supply chain management), 23-26
channels of distribution, 52
chase plans, 78
claims (freight), 119
classifications (freight), 115
clean B/L (bill of lading), 122
climate-controlled warehouses, 130
cloud computing, 219
COFC (container on a rail flatcar), 108
Colgate, 226
collaboration
benefits of, 206
collaboration methods, 206
CPFR (collaborative planning, forecasting, and replenishment), 208-210
ECR (Efficient Customer Response), 207-208
customer collaboration, 204-205
versus integration, 199
levels of external collaboration, 202-203
S&OP (sales & operational planning), 206
supplier collaboration, 25, 204
supply chain collaboration by industry, 202
types of external collaboration, 203-204
collaborative planning, forecasting, and replenishment (CPFR), 205, 208-210
collecting, 114
commodity rates, 116
common carriers, 110
competitive bidding, 97
complexity, 296
computer industry, return rates in, 160
configuration, 6
consolidation, 114
consolidation warehouses, 128, 132-133
consultants, 218
container on a rail flatcar (COFC), 108
continuity, 296
continuous production, 127
contract carriers, 110
contract manufacturing, 77
contract warehouses, 129
contracting, 203
control risks, 182
co-operative warehouses, 130
corporate purchase cards, 99
correlation, 45
costs, 6
cost strategy, 9
cost-based pricing, 97
distribution network types
distributor storage with carrier delivery, 231
distributor storage with customer pickup, 234
distributor storage with last-mile delivery, 232
e-business impact, 235
manufacturer storage with direct shipping, 229
manufacturer storage with direct shipping and in-transit merge, 230
retailer storage with customer pickup, 234-235
carrying or holding costs, 54
ordering costs, 54
total cost minimized, 55
reverse logistics, 161
supply chain software market, 217
transportation, 105
cost-volume (CV) analysis, 240-242
Council of Supply Chain Management Professionals (CSCMP), 4, 67, 103
counter seasonal demand, 77
CPFR (collaborative planning, forecasting, and replenishment), 205, 208-210
CPIM (Certified Production and Inventory Management), 29
CPSM (Certified Professional in Supply Management), 29, 89
CR (critical ratio), 85
CRCs (centralized return centers), 168-169
CRM (custom relationship management)
customer service, 150
internal versus external metrics, 152-153
levels of focus, 153
multifunctional dimensions of, 151
service failure and recovery, 153-154
service quality and metrics, 152
transactional elements of, 151-152
OMSs (order management systems), 155-156
software, 214
cross-docking warehouses, 128
CSCMP (Council of Supply Chain Management Professionals), 4, 103
CSCP (Certified Supply Chain Professional), 29
cube rates, 116
cube utilization (warehouses), 136
customer centricity, 294
customer classification of warehouses, 127-128
customer collaboration, 204-205
customer loyalty with reverse logistics, 163
customer relationship management. See CRM (custom relationship management)
customer service, 150
internal versus external metrics, 152-153
levels of focus, 153
multifunctional dimensions of, 151
service failure and recovery, 153-154
service quality and metrics, 152
transactional elements of, 151-152
customer service metrics, 269
customer-facing metrics, 142-143
customers brokers, 109
CV (cost-volume) analysis, 240-242
data versus information, 211-212
DCs (distribution centers), 128
decline (product lifecycle), 41-42
defects, 280
delivery, 99, 150. See also transportation systems
Delphi method, 39
demand and supply risk, 182
external demand drivers, 37
internal demand drivers, 36
demand management, 215
Delphi method, 39
jury of executive opinion, 39
quantitative versus qualitative models, 38-40
types of forecasts, 36
technology and best practices, 46-47
typical planning and scheduling process, 33
demand planning cross-functional meetings, 74
demand time fence (DTF), 80
density
density rates, 116
transportation costs and, 112
dependent demand inventory, 51-53
deregulation, effects on pricing, 115
descriptive analytics, 266
design
distribution network types, 228
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 233-234
facility layout
assembly line design and balancing, 256-258
career outlook, 262
facility design in service organizations, 255-256
fixed-position layouts, 255
hybrid layouts, 253
product layouts, 250
technology, 261
warehouse design and layout, 260-261
work cell staffing and balancing, 258-259
careers in supply chain network analysis, 247
center of gravity analysis, 243-245
CV (cost-volume) analysis, 240-242
dominant factors in manufacturing, 240
dominant factors in services, 240
location decisions hierarchy, 238-240
network optimization solutions, 246-247
overview, 225
strategic considerations, 237-238
transportation problem model, 245-246
weighted factor rating analysis, 242-243
for profitability, 295
reverse logistics systems, 162-164
documentation, 165
product collection system, 164-165
product location, 164
recycling or disposal centers, 165
deterioration, 140
diagnostic analytics, 266
diagnostic indicators, 274
digital demand, 294
direct procurement, 93
discrete orders, 98
dispersion, 114
disruptions in supply chain, 183
distance, transportation costs and, 111
distributed order management (DOM) system, 155
distribution centers (DCs), 128
distribution networks, 228, 294
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 233-234
distribution requirements planning (DRP), 61, 66-67
distribution warehouses, 125
distributor storage
with carrier delivery, 230-231
with last-mile delivery, 232-233
diversion, 113
freight bills, 118
freight claims, 119
international B/L (bill of lading), 121-122
international transport documents, 121
reverse logistics documentation, 165
terms of sale, 116-117, 120-121
DOM (distributed order management) system, 155
domestic transportation documents, 116-119
freight bills, 118
freight claims, 119
DRP (distribution requirements planning), 61, 66-67
DTF (demand time fence), 80
dynamic replenishment, 204
earliest due date (EDD), 85
e-business impact on distribution networks, 235-236
Economic Order Quantity (EOQ) inventory model, 55-57
economic value analysis (EVA), 267
economics
transportation
shipping patterns, 112
transportation economics, 110-111
warehouses
economic needs for warehousing, 126-127
ECR (Efficient Customer Response), 207-208
EDD (earliest due date), 85
EDI (electronic data interchange), 99
Efficient Customer Response (ECR), 207-208
EFT (electronic funds transfer), 99
electronic data interchange (EDI), 99
electronic funds transfer (EFT), 99
emerging supply chain technology trends, 219-221
employees
hiring, 77
laying off, 77
part-time workers, 77
subcontracting, 77
temporary workers, 77
end-to-end visibility, 296
engineer-to-order (ETO), 79
enterprise resource systems (ERP), 216
enterprise solutions, 213
environmental considerations for reverse logistics, 170-172
environmental risk, 182
EOQ (Economic Order Quantity) inventory model, 55-57
EPR (extended product responsibility) programs, 171
e-procurement, 99
ERP (enterprise resource systems), 216
error measurement, forecasting, 46-48
mean absolute deviation (MAD), 47
mean absolute percent error (MAPE), 47-48
mean squared error (MSE), 47
tracking signals, 48
ETO (engineer-to-order), 79
EVA (economic value analysis), 267
evaluating vendors, 96
event management, 216
exception rates, 116
execution
execution viewpoint, 214
execution-driven planning solutions, 221
execution-level collaboration, 203
supply chain execution, 215-216
executive opinion, jury of, 39
expediting, 114
exponential smoothing, 43
extended enterprise solutions (XES), 213
extended product responsibility (EPR) programs, 171
external demand drivers, 37
benefits of, 206
collaboration methods, 206
CPFR (collaborative planning, forecasting, and replenishment), 208-210
ECR (Efficient Customer Response), 207-208
customer collaboration, 204-205
levels of external collaboration, 202-203
S&OP (sales & operational planning), 206
supplier collaboration, 204
supply chain collaboration by industry, 202
types of external collaboration, 203-204
external risks (GSCM), 182-183
distribution network types, 228
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 233-234
layout
assembly line design and balancing, 256-258
career outlook, 262
facility design in service organizations, 255-256
fixed-position layouts, 255
hybrid layouts, 253
Lean, 289
product layouts, 250
technology, 261
warehouse design and layout, 260-261
work cell staffing and balancing, 258-259
location
careers in supply chain network analysis, 247
center of gravity analysis, 243-245
CV (cost-volume) analysis, 240-242
dominant factors in manufacturing, 240
dominant factors in services, 240
location decisions hierarchy, 238-240
network optimization solutions, 246-247
overview, 225
strategic considerations, 237-238
transportation problem model, 245-246
weighted factor rating analysis, 242-243
factory warehouses, 127
failure in customer service, 153-154
FAK (freight-all-kinds) rates, 116
FCFS (first come, first served), 85
FCS (finite capacity scheduling), 85
few suppliers, 92
financial management for reverse logistics, 170
financial metrics, 270
finished goods, 53
finite capacity scheduling (FCS), 85
firm infrastructure, 8
first come, first served (FCFS), 85
fixed-position layouts, 255
probabilistic safety stock, 58-60
rule of thumb safety stock calculations, 60
safety stock, 58
F.O.B. destination, 117
F.O.B. origin, 117
focus, levels of, 153
forecasting
associative models, 40
correlation, 45
least squares method, 44
multiple regression, 46
Delphi method, 39
external demand drivers, 37
internal demand drivers, 36
jury of executive opinion, 39
market surveys, 39
mean absolute deviation (MAD), 47
mean absolute percent error (MAPE), 47-48
mean squared error (MSE), 47
tracking signals, 48
growth phase, 41
introduction phase, 41
maturity, 41
quantitative versus qualitative models, 38-40
technology and best practices, 46-47
exponential smoothing, 43
moving average, 43
naive approach, 43
overview, 40
weighted moving average, 43
types of forecasts, 36
form utility, 15
forward scheduling, 84
foul B/L (bill of lading), 122
fourth-party-logistics (4PL) providers, 196-198
components for success, 197
Menlo Worldwide Logistics case study, 197-198
players, 197
free sale, certificate of, 120
freedom of trade, 174
freight bills, 118
freight brokers, 109
freight claims, 119
freight classifications, 115
freight forwarders, 109
freight-all-kinds (FAK) rates, 116
full-truckload carriers, 107
general warehouses, 125
global intermediaries, 109-110, 178
global supply chain management. See GSCM (global supply chain management)
government warehouses, 130
growth phase (product lifecycle), 41
in logistics industry, 295
GSCM (global supply chain management), 11
growth of globalization, 173-175
international transportation methods, 177-178
overview, 173
questions to ask when going global, 179-180
internal risks, 182
potential risk identification and impact, 181
supply chain disruptions, 183
hardware inventory planning, 67
Hewlett-Packard, 171
for-hire transportation industry, 192
hiring employees, 77
history
transportation systems, 103-105
warehouse management, 126
human resource management, 8
human supply chain technology, 221
hybrid layouts, 253
IBM ILOG LogicNet Plus XE, 246-247
ICC (Interstate Commerce Commission), 104
identifying risk, 181
idle time, 77
import licenses, 120
inbound logistics, 7
independent versus dependent demand inventory, 51-53
indirect procurement, 93
industry framework, 18
influence demand, 76
information
flows, 212
information utility, 15
information technology systems (reverse logistics), 168
in-sourcing, 91
inspection, certificate of, 120
Institute of Business Forecasting & Planning, 34
Institute for Supply Management (ISM), 29, 89
insurance, certificate of, 120
integrated business planning, 76
integration. See supply chain integration
interchange, 114
intermodal carriers, 108
internal demand drivers, 36
internal metrics (warehouses), 143
internal processes, 19
internal risks (GSCM), 182
international B/L (bill of lading), 121-122
International Commercial Terms, 120-121
International Society for Logistics (SOLE), 103
international transportation documents, 119-122
international B/L (bill of lading), 121-122
transport documents, 121
Interstate Commerce Commission (ICC), 104
introduction phase (product lifecycle), 41
inventory control and accuracy, 63-64
inventory planning
career outlook, 67
channels of distribution, 52
carrying or holding costs, 54
ordering costs, 54
total cost minimized, 55
EOQ (Economic Order Quantity) inventory model, 55-57
hardware, 67
independent versus dependent demand inventory, 51-53
inventory control and accuracy, 63-64
overview, 51
ROP (Reorder Point) models, 57
Single-Period model, 61
types of inventory, 53
typical planning and scheduling process, 51
inventory waste, 280
invoice approval, 100
invoicing processes, 204
ISM (Institute for Supply Management), 29, 89
JIT (just-in-time) programs, 92
joint ventures, 92
jury of executive opinion, 39
just-in-time (JIT) programs, 92
kaizen, 283
key performance indicators (KPIs), 273-274
KPIs (key performance indicators), 273-274
lagging indicators, 274
laying off employees, 77
layout
facility layout
assembly line design and balancing, 256-258
career outlook, 262
facility design in service organizations, 255-256
fixed-position layouts, 255
hybrid layouts, 253
Lean, 289
product layouts, 250
technology, 261
warehouse design and layout, 260-261
work cell staffing and balancing, 258-259
deterioration, 140
pallet positioning, 139
pilferage, 140
leadership, trends in, 296-297
leading indicators, 274
kaizen, 283
non-value-added activities, 279-280
overview, 277
batch size reduction and quick changeover, 289-290
facility layout, 289
point-of-use storage, 291
quality at the source, 290
Six Sigma, 292
standardized work, 288
TPM (total productive maintenance), 291
visual controls, 289
value-added activities, 279-280
VSMs (value stream maps), 283-286
least squares method, 44
legal types of carriage, 110-111
for-hire carriers, 110
less-than-truckload (LTL) carriers, 107
level plans, 78
levels (SCOR model), 6
leveraging effect (supply chain), 8-9
lifecycles (product)
growth phase, 41
introduction phase, 41
maturity, 41
overview, 25
Lighthouse for the Blind, 219
line haul, 113
linear regression, 44
loading orders, 149
local line haul carriers, 107
location (facility)
careers in supply chain network analysis, 247
center of gravity analysis, 243-245
CV (cost-volume) analysis, 240-242
distribution network types, 228
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 233-234
dominant factors in manufacturing, 240
dominant factors in services, 240
location decisions hierarchy, 238-240
network optimization solutions, 246-247
overview, 225
strategic considerations, 237-238
transportation problem model, 245-246
weighted factor rating analysis, 242-243
location cost-volume analysis, 240-242
logistics. See also reverse logistics
inbound logistics, 7
outbound logistics, 7
percentage of U.S. GDP (gross domestic product), 3
longest processing time (LPT), 85
lot sizing, 149
LPT (longest processing time), 85
LTL (less-than-truckload) carriers, 107
MAD (mean absolute deviation), 47
maintenance, repair, and operations (MRO), 53
make versus buy, 90
make-to-order (MTO), 79
make-to-stock (MTS), 79
managerial focus, 19
manufacture, certificate of, 120
manufacturer storage
with direct shipping and in-transit merge, 229-230
manufacturing, trends in, 294-295
many suppliers, 92
MAPE (mean absolute percent error), 47-48
market presence, warehouses and, 135
market surveys, 39
market-based pricing, 97
marketing, 8
master production schedule (MPS), 73, 78-80
Material Requirements Planning. See MRP (Material Requirements Planning)
maturity (product lifecycle), 41
maximizing recovery rates with reverse logistics, 163
mean absolute deviation (MAD), 47
mean absolute percent error (MAPE), 47-48
mean squared error (MSE), 47
measurement. See metrics
meetings
demand planning cross-functional meetings, 74
pre-S&OP meeting, 74
supply planning cross-functional meeting, 74
Menlo Worldwide Logistics case study, 197-198
Merck, 92
ABC method, 267
balanced scorecard approach, 267, 268-270
customer service metrics, 269
financial metrics, 270
operational metrics, 269
customer service
internal versus external metrics, 152
service quality and metrics, 152
EVA (economic value analysis), 267
mean absolute deviation (MAD), 47
mean absolute percent error (MAPE), 47-48
mean squared error (MSE), 47
tracking signals, 48
history of, 266
measurement categories, 267-268
overview, 265
supply chain dashboard and KPIs, 273-274
transportation systems, 122
Mission Foods, 219
mitigating risk (GSCM), 184-185
MNCs (multinational corporations), 174
mobile computing, 219
models
illustration, 5
modes of transportation, 105-110
air carriers, 108
global intermediaries, 109-110
intermodal carriers, 108
motor carriers, 107
shipment characteristics, 106
motion waste, 280
Motor Carrier Act of 1980, 104
motor carriers
domestic transportation, 107
international transportation, 178
Motorola, 292
moving averages, 43
MPS (master production schedule), 73, 78-80
MRO (maintenance, repair, and operations), 53
MRP (Material Requirements Planning), 80-83
BOM (bill of materials), 80-81
MSE (mean squared error), 47
MTO (make-to-order), 79
MTS (make-to-stock), 79
multichannel sourcing, 296
multi-enterprise visibility systems, 220-221
multifunctional dimensions of customer service, 151
multinational corporations (MNCs), 174
multiple regression, 46
naive approach (time series models), 43
National Motor Freight Classification (NMFC), 115
near shoring, 295
near sourcing, 92
negotiable B/L (bill of lading), 122
negotiation
reverse logistics, 170
Nestlé, 172
network design
distribution network types, 228
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 234-235
facility layout
assembly line design and balancing, 256-258
career outlook, 262
facility design in service organizations, 255-256
fixed-position layouts, 255
hybrid layouts, 253
product layouts, 250
technology, 261
warehouse design and layout, 260-261
work cell staffing and balancing, 258-259
facility location
careers in supply chain network analysis, 247
center of gravity analysis, 243-245
CV (cost-volume) analysis, 240-242
dominant factors in manufacturing, 240
dominant factors in services, 240
location decisions hierarchy, 238-240
network optimization solutions, 246-247
overview, 225
strategic considerations, 237-238
transportation problem model, 245-246
weighted factor rating analysis, 242-243
new demand, 77
NMFC (National Motor Freight Classification), 115
non-value-added activities, 279-280
non-vessel-operating common carriers (NVOCCs), 110
notified bill of lading, 117
NVOCCs (non-vessel-operating common carriers), 110
ocean bill of lading, 122
ocean transport, 177
omni-channel marketing, 10, 294
OMSs (order management systems), 155-156
operational metrics, 269
operational-level measurement, 268
operations
defined, 7
GSCM (global supply chain management), 11
growth of globalization, 173-175
international transportation methods, 177-178
overview, 173
questions to ask when going global, 179-180
procurement
delivery, 99
direct procurement, 93
few versus many suppliers, 92
indirect procurement, 93
invoice approval, 100
joint ventures, 92
make versus buy, 90
near sourcing, 92
process overview, 93
purchasing, 89
receipt of goods, 100
in-sourcing, 91
technology, 101
vertical integration, 92
reverse logistics
costs, 161
environmental considerations, 170-172
recall, 159
recycling and waste disposal, 160
refilling, 159
repairs and refurbishing, 158
return rates by industry, 160-161
transportation systems
costs, 105
domestic transportation documents, 116-119
for-hire carriers, 110
international transportation documents, 119-122
international transportation methods, 177-178
legal types of carriage, 110-111
metrics, 122
overview, 103
TMS (transportation management systems), 122
transportation economics, 110-111
warehouse management
distribution warehouses, 125
economic needs for warehousing, 126-127
general warehouses, 125
history of, 126
picking, 141
receiving, 141
shipping, 141
storage, 141
WMS (warehouse management system), 143-144
YMS (yard management system), 145
opportunities in SCM (supply chain management), 23-26
optimization of supply chains, 298
order batching, 149
order bill of lading, 117
to order B/L (bill of lading), 122
order management
OMSs (order management systems), 155-156
order delivery, 150
order placement, 148
order preparation and loading, 149
order-filling accuracy, 149
process, 148
order management systems (OMSs), 155-156
ordering costs, 54
origin, certificate of, 119
outbound logistics, 7
3PLs (third-party-logistics providers), 193-196
advantages, 194
4PLs (fourth-party-logistics providers), 196-198
components for success, 197
Menlo Worldwide Logistics case study, 197-198
players, 197
outsourced manufacturer collaboration, 204
reverse logistics, 170
steps in outsourcing process, 191-192
traditional service providers, 192-193
overprocessing, 280
overproduction, 280
overtime, 77
ownership type (warehouses), 129-130
pallet positioning, 139
Pareto principle, 61
partnerships, 296
part-time workers, 77
pCards, 99
people-enabling software, 221
performance attributes (SCOR model), 6
periods of supply (POS), 65
physical distribution, 13
picking, 141
pickup and delivery, 113
pilferage, 140
place utility, 15
placing orders, 148
planning
aggregate planning and scheduling
integrated business planning, 76
MPS (master production schedule), 78-80
MRP (Material Requirements Planning), 80-83
overview, 69
production strategies, 79
strategies, 78
supply capacity options, 77
technology, 86
demand planning. See demand planning
forecasting
Delphi method, 39
jury of executive opinion, 39
market surveys, 39
quantitative versus qualitative models, 38-40
technology and best practices, 48-49
types of forecasts, 36
inventory planning
career outlook, 67
channels of distribution, 52
EOQ (Economic Order Quantity) inventory model, 55-57
hardware, 67
independent versus dependent demand inventory, 51-53
inventory control and accuracy, 63-64
overview, 51
ROP (Reorder Point) models, 57-61
types of inventory, 53
typical planning and scheduling process, 51
supply chain planning, 215
planning time fence (PTF), 80
players, 4PLs (fourth-party-logistics providers), 197
PLM (product lifecycle management) software, 214
point solutions, 213
point-of-use storage, 291
pooling, 113
Porter, Michael, 7
POS (periods of supply), 65
possession utility, 15
postponement, warehouses and, 134
predictive analytics, 266
prenegotiated blanket orders, 98
prenegotiated vendor-managed inventory (VMI), 98
preparing orders, 149
pre-S&OP meeting, 74
prescriptive analytics, 266
price stabilization, 127
pricing
competitive bidding, 97
cost based, 97
deregulation and, 115
market based, 97
price stabilization, 127
priorities
priority rules, 85
processing, 149
private warehouses, 129
probabilistic safety stock, 58-60
processes
forecasting process steps, 37-38
internal processes, 19
procurement
delivery, 99
invoice approval, 100
process overview, 93
receipt of goods, 100
specifications, establishing, 94-95
analysis, 162
processing, 162
receiving, 161
support, 162
risk, 182
priorities, 149
reverse logistics, 162
Proctor and Gamble, 36
procurement
defined, 8
delivery, 99
direct procurement, 93
few versus many suppliers, 92
indirect procurement, 93
invoice approval, 100
joint ventures, 92
make versus buy, 90
near sourcing, 92
process overview, 93
purchasing, 89
receipt of goods, 100
in-sourcing, 91
technology, 101
vertical integration, 92
product collection system (reverse logistics), 164-165
product flow (warehouses), 136-137
product layouts, 250
product lifecycle management (PLM) software, 214
product lifecycles
growth phase, 41
introduction phase, 41
maturity, 41
overview, 25
product location (reverse logistics), 164
production economies of scale, 127
Production Quantity EOQ model, 56
production strategies, 79
profitability, design for, 295
protecting profits with reverse logistics, 163
PTF (planning time fence), 80
public warehouses, 129, 192-193
publishing industry, return rates in, 160
purchasing, 89
pyramid approach to forecasting, 34-35
qualitative forecasting models
Delphi method, 39
jury of executive opinion, 39
market surveys, 39
quantitative versus qualitative models, 38-39
quality
customer service, 152
quality at the source, 290
strategy, 9
quantitative forecasting models
associative models, 40
correlation, 45
least squares method, 44
multiple regression, 46
quantitative versus qualitative models, 39-40
exponential smoothing, 43
moving average, 43
naive approach, 43
overview, 40
weighted moving average, 43
Quantity Discount EOQ model, 57
radio frequency identification (RFID), 67, 219
rail
domestic transportation, 106-107
international transportation, 178
rates (transportation), 114-116
effects of deregulation on pricing, 115
freight classifications, 115
rate determination, 116
raw materials, 53
recall, 159
receipt of goods, 100
reconsignment, 113
recovery, customer service, 153-154
recycling and waste disposal, 160, 165
refilling, 159
regional railroads, 107
regression
linear regression, 44
multiple regression, 46
reliability, 6
remanufacturing, 159-160, 169-170
Reorder Point models. See ROP (Reorder Point) models
repairs, 158
request for quotation (RFQ), 95
requests for proposals (RFPs), 95, 191
responsiveness, 6
retail industry
retail distribution warehouses, 127
retailer storage with customer pickup, 233-234
S&OP (sales & operational planning), 76
return rates by industry, 160-161. See also reverse logistics
computer industry, 160
publishing industry, 160
returns-to-revenue, 162
revenue, positively impacting with reverse logistics, 162-164
costs, 161
environmental considerations, 170-172
asset recovery, 170
CRCs (centralized return centers), 168-169
financial management, 170
information technology systems, 168
negotiation, 170
outsourcing, 170
remanufacture and refurbishment, 169-170
zero returns, 169
analysis, 162
processing, 162
receiving, 161
support, 162
recall, 159
recycling and waste disposal, 160
refilling, 159
repairs and refurbishing, 158
return rates by industry, 160-161
computer industry, 160
publishing industry, 160
documentation, 165
product collection system, 164-165
product location, 164
recycling or disposal centers, 165
warehouses, 129
RFID (radio frequency identification), 67, 219
RFPs (requests for proposals), 95, 191
RFQ (request for quotation), 95
risk management
GSCM (global supply chain management), 181-185
internal risks, 182
potential risk identification and impact, 181
supply chain disruptions, 183
overview, 295
risk matrix, 181
ROP (Reorder Point) models, 57
probabilistic safety stock, 58-60
rule of thumb safety stock calculations, 60
safety stock, 58
Single-Period model, 61
routine viewpoint, 213
rule of thumb safety stock calculations, 60
rules, priority, 85
S&OP (sales & operational planning). See aggregate planning and scheduling
S&T (switching and terminal) carriers, 107
SaaS (software-as-a-service), 217, 219
safety stock
explained, 58
probabilistic safety stock, 58-60
rule of thumb safety stock calculations, 60
sales, 8
sales & operational planning (S&OP). See aggregate planning and scheduling
Sawtooth model, 56
SCC (Supply Chain Council) SCOR model, 5-6
illustration, 5
scheduling. See aggregate planning and scheduling
SCM (supply chain management), 4, 13
career outlook, 26-29, 293-294
CRM (custom relationship management)
OMSs (order management systems), 155-156
GSCM (global supply chain management), 11
opportunities and challenges, 23-26
optimization of supply chains, 298
order management
order delivery, 150
order placement, 148
order preparation and loading, 149
process, 148
illustration, 5
strategy, 15
strategic choices, 17
trends
supply chain leadership trends, 296-297
scope, 6
illustration, 5
seasonality
seasonal demand, 127
seasonal production, 126
segmenting supply chain, 10-11, 298
services
defined, 8
service orientation, 298
service utility, 15
shipment characteristics by mode of transportation, 106
shipment consolidation, 149
shortest processing time (SPT), 85
FCS (finite capacity scheduling), 85
types of scheduling, 84
typical planning and scheduling process, 83
short-term supply chain technology trends, 218
signals (tracking), 48
simulation, 298
single integrated solution software, 217
Single-Period model, 61
cube utilization, 136
number of stories, 135
skills waste, 280
small-package carriers, 107
Social Security Administration (SSA), 219
software
aggregate planning and scheduling, 86
procurement, 101
software market (SCM software), 214-218
best-in-class versus single integration solution, 217
BI (business intelligence), 216
consultants, 218
costs, 217
short-term trends, 218
supply chain event management, 216
supply chain execution, 215-216
supply chain planning, 215
software-as-a-service (SaaS), 217, 219
TMS (transportation management systems), 122
SOLE (International Society for Logistics), 103
sorting and staging (reverse logistics), 161-162
source control, 290
sourcing, 295
multichannel sourcing, 296
in-sourcing, 91
specifications (procurement), 94-95
SPT (shortest processing time), 85
SRM (supplier relationship management) software, 214
SSA (U.S. Social Security Administration), 219
stabilization of prices, 127
standardized work, 288
STB (Surface Transportation Board), 115
stopping in transit, 113
storage
distribution network types, 228
distributor storage with carrier delivery, 230-231
distributor storage with customer pickup, 233-234
distributor storage with last-mile delivery, 232-233
manufacturer storage with direct shipping, 228-229
manufacturer storage with direct shipping and in-transit merge, 229-230
retailer storage with customer pickup, 233-234
global intermediaries, 178
point-of-use storage, 291
warehouse storage, 141
stories (warehouse), 135
stowability, transportation costs and, 112
straight bill of lading, 117
strategic alliances. See supply chain partners
strategy, 15
aggregate planning and scheduling, 78
GSCM (global supply chain management) strategy development, 175-177
strategic choices, 17
strategic collaboration, 202
strategic viewpoint, 213
strategic-level measurement, 268
subcontracting, 77
supplier relationship management (SRM) software, 214
suppliers
collaboration with, 25
few versus many suppliers, 92
supplier collaboration, 204
supplier management, 295
supplier relationship management (SRM) software, 214
supply capacity options, 77
supply chain collaboration, 25
Supply Chain Council SCOR model. See SCC (Supply Chain Council) SCOR model
supply chain dashboard and KPIs, 273-274
supply chain defined, 4
supply chain disruptions, 183
supply chain execution, 215-216
supply chain integration. See also supply chain partners
collaboration methods, 206
CPFR (collaborative planning, forecasting, and replenishment), 208-210
ECR (Efficient Customer Response), 207-208
benefits of, 206
customer collaboration, 204-205
levels of external collaboration, 202-203
S&OP (sales & operational planning), 206
supplier collaboration, 204
supply chain collaboration by industry, 202
types of external collaboration, 203-204
supply chain partners
3PLs (third-party-logistics providers), 193-196
4PLs (fourth-party-logistics providers), 196-198
steps in outsourcing process, 191-192
traditional service providers, 192-193
technology, 211
best of breed solutions, 213
bullwhip effect, 212
customer relationship management (CRM) software, 214
data versus information, 211-212
enterprise solutions, 213
point solutions, 213
product lifecycle management (PLM) software, 214
supplier relationship management (SRM) software, 214
supply chain information flows, 212
supply chain software market, 214-218
XES (extended enterprise solutions), 213
supply chain management. See SCM (supply chain management)
supply chain operations
GSCM (global supply chain management), 11
growth of globalization, 173-175
international transportation methods, 177-178
overview, 173
questions to ask when going global, 179-180
procurement
delivery, 99
direct procurement, 93
few versus many suppliers, 92
indirect procurement, 93
invoice approval, 100
joint ventures, 92
make versus buy, 90
near sourcing, 92
process overview, 93
purchasing, 89
receipt of goods, 100
in-sourcing, 91
technology, 101
vertical integration, 92
reverse logistics
costs, 161
environmental considerations, 170-172
recall, 159
recycling and waste disposal, 160
refilling, 159
repairs and refurbishing, 158
return rates by industry, 160-161
transportation systems
costs, 105
domestic transportation documents, 116-119
for-hire carriers, 110
international transportation documents, 119-122
international transportation methods, 177-178
legal types of carriage, 110-111
metrics, 122
overview, 103
TMS (transportation management systems), 122-123
transportation economics, 111-114
warehouse management
distribution warehouses, 125
economic needs for warehousing, 126-127
general warehouses, 125
history of, 126
picking, 141
receiving, 141
shipping, 141
storage, 141
WMS (warehouse management system), 143-144
YMS (yard management system), 145
supply chain partners. See also supply chain integration
3PLs (third-party-logistics providers), 193-196
advantages, 194
4PLs (fourth-party-logistics providers), 196-198
components for success, 197
Menlo Worldwide Logistics case study, 197-198
players, 197
steps in outsourcing process, 191-192
traditional service providers, 192-193
supply chain planning, 215
supply chain segmentation, 298
supply chain strategy, 15
strategic choices, 17
supply chain technology, 211
best of breed solutions, 213
bullwhip effect, 212
customer relationship management (CRM) software, 214
data versus information, 211-212
emerging trends, 298
enterprise solutions, 213
point solutions, 213
product lifecycle management (PLM) software, 214
supplier relationship management (SRM) software, 214
supply chain information flows, 212
supply chain software market, 214-218
best-in-class versus single integration solution, 217
BI (business intelligence), 216
consultants, 218
costs, 217
short-term trends, 218
supply chain event management, 216
supply chain execution, 215-216
supply chain planning, 215
XES (extended enterprise solutions), 213
supply management, 215
supply planning cross-functional meeting, 74
supply risk, 182
support, reverse logistics, 162
Surface Transportation Board (STB), 115
surveys, market surveys, 39
switching and terminal (S&T) carriers, 107
system design, reverse logistics, 162-164
documentation, 165
product collection system, 164-165
product location, 164
recycling or disposal centers, 165
tactical collaboration, 202
tactical viewpoint, 213
tactical-level measurement, 268
talent development, 295
TAPS (Trans-Alaska Pipeline System), 108
technology, 211
aggregate planning and scheduling, 86
best of breed solutions, 213
bullwhip effect, 212
customer relationship management (CRM) software, 214
data versus information, 211-212
development, 8
emerging trends, 298
enterprise solutions, 213
facility layout, 261
network optimization solutions, 246-247
OMSs (order management systems), 155-156
point solutions, 213
procurement, 101
product lifecycle management (PLM) software, 214
reverse logistics, 168
supplier relationship management (SRM) software, 214
supply chain information flows, 212
supply chain software market, 214-218
best-in-class versus single integration solution, 217
BI (business intelligence), 216
consultants, 218
costs, 217
short-term trends, 218
supply chain event management, 216
supply chain execution, 215-216
supply chain planning, 215
transportation systems, 122
warehouse management
WMS (warehouse management system), 143-144
YMS (yard management system), 145
XES (extended enterprise solutions), 213
temporary workers, 77
terminal handling, 114
terminals, 105
terms of sale, 116-117, 120-121
third-party-logistics (3PL) providers, 193-196
advantages, 194
time series forecasting models, 42-43
exponential smoothing, 43
moving average, 43
naive approach, 43
overview, 40
weighted moving average, 43
time strategy, 9
time utility, 15
TMS (transportation management systems), 122, 215-216
TNCs (transnational corporations), 174
TOFC (trailer on a flatcar), 108
batch size reduction and quick changeover, 289-290
facility layout, 289
point-of-use storage, 291
quality at the source, 290
Six Sigma, 292
standardized work, 288
TPM (total productive maintenance), 291
visual controls, 289
total cost minimized, 55
total productive maintenance (TPM), 291
Toyota, 278
TPM (total productive maintenance), 291
tracing, 114
tracking signals, 48
traditional service providers, 192-193
trailer on a flatcar (TOFC), 108
transactional elements, customer service, 151-152
transactions, 6
Trans-Alaska Pipeline System (TAPS), 108
transit privilege, 113
transit sheds, 178
transnational corporations (TNCs), 174
transportation management systems (TMS), 122, 215-216
transportation problem model, 245-246
costs, 105
domestic transportation documents, 116-119
freight bills, 118
freight claims, 119
for-hire carriers, 110
international transportation documents, 119-122
international B/L (bill of lading), 121-122
transport documents, 121
international transportation methods, 177-178
legal types of carriage, 110-111
metrics, 122
air carriers, 108
global intermediaries, 109-110
intermodal carriers, 108
motor carriers, 107
shipment characteristics by mode of transportation, 106
overview, 103
effects of deregulation on pricing, 115
freight classifications, 115
rate determination, 116
TMS (transportation management systems), 122
transportation economics, 110-111
shipping patterns, 112
transportation waste, 280
trends in supply chain management
supply chain leadership trends, 296-297
UFC (Uniform Freight Classification), 115
uniform bill of lading, 117
Uniform Freight Classification (UFC), 115
unique value proposal, 19
UPS, 196
U.S. Social Security Administration (SSA), 219
value stream maps (VSMs), 283-286
value-added activities, 279-280
value-added networks (VANs), 99
VANs (value-added networks), 99
varying inventory levels, 77
vendor evaluation, 96
vertical integration, 92
VICS (Voluntary Inter-industry Commerce Solutions), 208
visibility, 296
visual controls, 289
Vizio, 92
Voluntary Inter-industry Commerce Solutions (VICS), 208
VSMs (value stream maps), 283-286
vulnerability maps, 181
waiting, 280
Walmart, 172
Warehouse Educational and Research Council (WERC), 126
warehouse management. See also facilities
distribution warehouses, 125
accumulation, mixing, and sorting, 133-134
allocation, 134
market presence, 135
postponement, 134
economic needs for warehousing, 126-127
deterioration, 140
pallet positioning, 139
pilferage, 140
general warehouses, 125
history of, 126
picking, 141
receiving, 141
shipping, 141
cube utilization, 136
number of stories, 135
storage, 141
warehouse features, 130
warehouses by customer classification, 127-128
warehouses by ownership type, 129-130
warehouses by role in supply chain, 128-129
warehouse design and layout, 260-261
WMS (warehouse management system), 65-66, 143-144, 215
YMS (yard management system), 145
warehouse management systems (WMS), 65-66, 143-144, 215
waste disposal and recycling, 160, 165
ways, 105
websites
American Production and Inventory Control Society, 67
AST&L (American Society for Transportation & Logistics), 103
Council of Supply Chain Management Professionals, 67
Institute of Business Forecasting & Planning, 34
SOLE (International Society for Logistics), 103
WERC (Warehouse Educational and Research Council), 126
weighing, 114
weight, transportation costs and, 111
weighted factor rating analysis, 242-243
weighted moving average, 43
WERC (Warehouse Educational and Research Council), 126
WIP (work in progress), 53
WMS (warehouse management systems), 65-66, 143-144, 215
staffing and balancing, 258-259
work in progress (WIP), 53
workflow, 6
Xerox, 171
XES (extended enterprise solutions), 213
yard management system (YMS), 145
YMS (yard management system), 145
zero returns, 169
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